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The Canadian tourism industry requires sophisticated marketing, delivering value and service. Beginning in 1984 Canada experienced a turnaround following 10 years of decline during which its balance of payments deficit on the international travel account grew from $300 million to $2.2 billion. Nineteen eighty-six was an exceptional year: foreign visitors increased 18%. The primary reasons for this growth were EXPO 86 in Vancouver, a favourable exchange rate with the US, an aggressive federal government advertising campaign in the US and negative incidents in other parts of the world which discouraged N Americans from travelling overseas. The best potential new source for travellers to Canada is likely in the Pacific Rim countries. Arrivals from Japan and Hong Kong are expected to show an increase, continuing an upward trend that started in 1979. Australia remains stable. The US continues to be Canada's primary source of visitors; they comprise over 85% of our tourism market. Traditional European markets, including the UK, France, W Germany and the Netherlands, are expected to produce moderate growth over the next few years.

Contemporary Canadian tourist attractions are often the same as those extolled by early travel writers - the fjorded coast of BC, the majestic grandeur of the Canadian Rockies, the wide open spaces of the Prairies, the lakes, forests and rivers of central Canada, the Atlantic coast in its infinite variety of bays, coves, beaches and scenic vistas, the arctic environment and people, and, of course, such old favourites as NIAGARA FALLS. The works of humans have been added to these natural assets through the development of modern and sophisticated cities, and through galleries and museums, performing arts, historic sites, FESTIVALS, and events such as Expo 86, the CALGARY STAMPEDE and winter OLYMPIC GAMES. To most of the world Canada is known as a tourist destination through its scenery, space and environment.

During the review period, the travel and tourism industry was under constant pressure beginning in 2001 with the terrorist attacks. In 2003, the industry was tainted by the war in Iraq, which caused uneasiness about travel, the SARS outbreak in Toronto and a sluggish US economy. SARS was contained within two months of the outbreak, despite a second unexpected resurgence, but the damage brought on by a WHO travel advisory was done. The impact of these events was greatest on international tourism, followed by US visitors to Canada, but was not expected to significantly influence Canadians' decisions to travel.

Domestic tourism, which accounted for the bulk of the Canadian tourism industry, remained firm during the review period, with continuing popularity particularly among the older generation, highlighting the desire to stay close to home, which resulted from security and economic concerns. However, more cautious spending patterns emerged towards the end of the review period, per capita expenditure for domestic trip fell by 6% since 2000, but a drop of less than 1% over the review period as a whole. Overall, the WTO ranked Canada as ninth in the world's top 15 destinations for travel, capturing 2. 8% of the total international travel market at its last ranking, in 2001. Demographic trends remained largely intact. Greying populations worldwide, including Canada, will mean demand for structured tourism products such as pre-packaged and all-inclusive tours and cruises and quality accommodations.

Women are also increasingly becoming a larger proportion of Canadian travellers. The accommodation market suffered towards the end of the review period. Hardest hit was Toronto, suffering losses of C$5million per day in April, as many major conventions cancelled their reservations due to SARS. Accommodations across Ontario also reported losses, but not nearly as significant as those in Toronto. Through the review period, accommodation revenue increased by 9. 7%. Hotels struggled to keep up occupancy levels and in 2003 there were tremendous value deals available in hotels. In such a competitive environment, alternative, no-frills accommodation benefited, such as hostels and guesthouses. Consumers were also more likely to stay with international brand names, such as Fairmont Hotels and Resorts. Merger and acquisition activity dropped off significantly in almost all areas of the travel and tourism industry.

The tone in the industry as a whole was, at best, to maintain market share and revenue with strong efforts made to avoid losing ground because of the tough economic environment. There were no significant mergers and acquisitions in 2003, although as the economy improves, through 2004 and 2005 the levels of activity may turn around.

Canada's travel deficit, pushed down to its lowest level in more than 10 years, is benefiting from an influx of American tourism dollars.

The deficit declined by 42.1 per cent to $1.4 billion in the first nine months of 1998, down from $2.4 billion during the same period in 1997.

Foreign spending, up 11.2 per cent from the same period last year and valued at $11.1 billion, largely accounts for this decrease. Meanwhile Canadian tourism spending abroad also rose 0.7 per cent to $12.5 billion.

"The record number of Americans visiting Canada combined with fewer Canadians vacationing in the U.S. has resulted in a huge shift in the international travel account," explained Canadian Tourism Commission (CTC) chairman Judd Buchanan. "This has buffered the impact of the drop in visits and spending by tourists from many of our primary overseas markets, particularly Japan, France and Germany."

What key factors are responsible for this boom in Canada's tourism industry?

"Canadians are doing more internal travel because of the low value of our dollar, but that's not the motivating factor for Americans," explains John Olsthoorn, a spokesman for the Canadian Tourism Commission. "The economic situation in the U.S. is positive, with low unemployment and high consumer confidence, which means that people have more discretionary funds."

Olsthoorn notes that Canada also offers Americans what they want: safe cities, the great outdoors, and friendly people. Another key factor is the Open Skies Agreement, which has opened more Canadian airports to direct flights from the U.S. This gives Americans more choices about flying into Canada.

"Americans can afford to travel more and they are choosing Canada in record numbers because it offers them what they want to see and do," added Christena Keon Sirsly, chair of CTC's U.S. leisure marketing committee and vice-president of marketing at VIA Rail Canada Inc. "Once in Canada, many of them realize their U.S. dollar goes further and they end up spending more."

This is clear when you look at the changes to Canada's travel deficit with the U.S. Total tourism receipts from the U.S. jumped 23.7 per cent, while Canadian tourism spending in the U.S. fell 3.2 per cent. The overall result is that Canada's travel deficit with the U.S. plunged 67.1 per cent to $788 million.

In contrast, overseas tourism receipts fell $230 million, while Canadians' overseas spending rose $347 million, increasing Canada's travel deficit with the rest of the world by $578 million during the first nine months of 1998.

Marketing is the final factor in the boom in Canada's tourism industry. In addition to vigorously marketing Canada to potential tourists from the U.S. and overseas, CTC has forged partnerships with Statistics Canada (which produces the International Travel Account), the provinces and territories, private industry and universities helping to make Canada the world leader in tourism-economic research.

There are some facts about domestic tourism.

Domestic Tourism Demand, Third Quarter 2003

• Domestic demand steady while foreign expenditures down

• Domestic expenditures reached $11.4 billion in the 3rd quarter of 2003, an increase of 3.2% over the previous year, which represents the sixth consecutive year-over-year gain..

• Foreign spending in the third quarter 2003 decreased 10% to $6.3 billion compared to the same quarter in 2002. This is the third consecutive quarterly decline in foreign spending.

• Spending at home remained weak while Canadians increased touring abroad, thus the share of domestic spending was reduced to 64%.

• In comparison to the second quarter 2003, seasonally adjusted third quarter 2003 domestic spending was up 4.1% and foreign spending was up 3.3% (seasonally adjusted).

• The year-over-year data contrasts the quarter-to-quarter, the first being attributed to continued decreases in spending by international visitors.

Conclusion

Canada is the largest country in land size in the western hemisphere with a population of only 29 million people. Its form of government can be characterized as a constitutional monarchy with a parliamentary democracy. It comprises of 10 provinces and 3 territories, with Toronto; Montreal and Vancouver being the largest cities. Canada is a young and dynamic country where immigration is the foundation for economic growth and which brings people, customs and traditions, rituals and culture to the forefront of current Government policy.

Canada is a very large country geographically with a widely dispersed population. The economy still relies heavily on primary resources, which requires that goods be transported from one end of the country to the other. Subsequently, reliable and efficient modes of transportation are quite important in Canada, probably more so than in some other countries.

Caterers are primarily engaged in serving meals by mobile canteens or on private premises including halls, schools, factories, hospitals, offices and camps. Except for small single functions, catering is normally done on an annual contract basis.

This section has been developed to indicate how certain companies redefine their workplace, position themselves to take competitive advantage of emerging niches and adapt to ever increasing public and private sector flows of information and education. It indicates both positive and negative responses to the marketplace.

Illegal basement caterers have driven some Edmonton operators to form a professional society in an effort to clean up the industry.

The Catering Professionals Association of Alberta is recruiting new members to add to the 19 companies already in the group. "When you think about it, you can put some food out without a whole lot of overhead or expertise," says Todd Rutter, owner of A Cappella Catering and head of the new organization. "But the problem is to do it properly, to do it legally and, therefore, safely, it requires much more than that."

About 200 caterers are listed in the Edmonton Yellow Pages. An undetermined number operate without licenses or health permits, said Steven Probert, a public health inspector. "The guys who go legal spend a lot of money only to be driven under financially by these illegal operations."

To operate legally caterers must have a valid business license, a health permit and liability insurance. They're obliged to make payments to Revenue Canada and workers' compensation. They must also meet building code standards with proper heating and ventilation systems — all of which cost money.

Rick Dimock, the city's food program co-ordinator responsible for inspections, said inspectors are always watching out for people who operate illegally. "We know it happens, but the only way we find out about it is if we get a complaint from someone or we run into it."

The city implemented a new system last October whereby inspectors make three visits a year to each of the larger companies. The new catering association hopes that setting rigid membership requirements and encouraging as large a membership as possible will stop people from getting away with breaking the law.

Accommodations in Canada -- the place to visit for bed and breakfasts, lodging, hotels, motels, resorts, inns and attractions across Canada who offer their guests a friendly mix of modern comfort, old world charm and warm hospitality.

Visitors from outside Canada make tourism Canada's fifth-largest earner of foreign exchange after motor vehicles, auto parts, crude petroleum and newsprint. The bulk of Canada's tourism comes from Canadians travelling in and exploring their own country. On the international travel account, Canada has a falling share of the international market and a $1.2-billion deficit: Canadians spent $7.5 billion outside Canada. Catering to tourists in Canada involves many large companies and about 100 000 small and medium-sized businesses, including almost 300 000 hotel and motel rooms, more than 45 000 eating places and 4000 travel agencies. These businesses serve over 34 million visitors a year. Every 100 000 visitors to a community can mean $9 million in revenue throughout the local economy.

Literature

1. Restaurant Hospitality and Food Management, Supplement, Fall, 2007.

2. http://canada.gc.ca

3. Christine Lindop. Canada. Oxford University Press. 2001.

4. Canadian Press Newswire, March 6, 2005.

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